Texas gets an AA+ for its diverse economy

Because Texas has such a broad and diverse economy, it has received an AA+ credit rating. That’s pretty impressive. I only got an AA+ once in grade school, and I think it was a typo.

Standard & Poor’s lifted Texas’ credit ratings because its diversifying economy will probably recover more quickly than the rest of the U.S.

Texas general obligation bonds were raised to AA+, one level below the top grade, and debt backed by state appropriations was boosted to AA.

The state’s upcoming two-year budget, which begins Sept. 1, keeps a $6.7 billion rainy day fund that will rise to $9.1 billion by the end of the biennium, Bloomberg reported.

“The Texas economy will recover earlier and at a faster rate than most other states given its continued population growth and relatively low cost of doing business,” S&P analysts Horacio Aldrete-Sanchez and James Breeding said in a release.